Tuesday, May 18, 2010

Last week's dead-cat-bounce on the FTSE 250 ETF, MIDD, looks to have run its course with the 50-day MA now offering supply in place of demand as was the case in February. Its position relative to psychological resistance at 1,000 is also problematic and the likelihood is for it to make another run at rising support connecting Dec-Feb-May reaction lows.

The problem with such a test coming so soon after the early May capitulation is whether bulls will have the appetite to step in again and defend the line. Working in their favour is the rising 200-day MA which has yet to see a test since the rally kicked off in March 2009 and looks set to bissect this line to the upside.

This will likely be the last opportunity for bulls to maintain the 14-month rally in its current form before a more protracted decline sets in.

On the trading strategy front it was a relatively quiet Monday for signals with short strategies the busiest. There are currently 22 short trading strategies available in the MarketPlace - just select "Short" from the Type drop-down menu in the top-right part of the menu.

ASX Oak

New Short Target and Stop for LEI (Sydney) at AU$32.79 (EoD): Target AU$28.93, Stop AU$35.35

Frankfurt High Winners

Long Exit at Trailing Stop for AUS (Frankfurt) at €9.30

India Oak

New Short Target and Stop for MCDL (Mumbai) at INR1173.6 (EoD): Target INR1053.0, Stop INR1287.0
New Short Target and Stop for ABAN (Mumbai) at INR882.0 (EoD): Target INR762.2, Stop INR931.6
Confirmation Entry for JLVY (Mumbai) at INR1187.4
Short Confirmation Entry for TELCO (Mumbai) at INR811.6

Indian Golden Brown

Long Confirmation Entry for LART (Mumbai) at INR1528.1
Long Unacted Entry for ZEE (Mumbai) at INR291.6 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Exit at Trailing Stop for BHEL (Mumbai) at INR2321.8
Long Exit at Stop for ESRO (Mumbai) at INR127.0
Long Exit at Trailing Stop for PFC (Mumbai) at INR255.1

Indian High Winners

Long Unacted Entry for LART (Mumbai) at INR1528.1 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Unacted Entry for ZEE (Mumbai) at INR291.6 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Exit at Trailing Stop for BOB (Mumbai) at INR675.0

ISEQ Elm

Long Confirmation Entry for KRZ (ISEQ) at €22.67

My First Subscribed Strategy

Long Confirmation Entry for WMT (NYSE) at $52.52
Long Exit at Trailing Stop for C (NYSE) at $3.81

Relative Canada

Long Confirmation Entry for MKP (Toronto) at $12.78
Long Confirmation Entry for BDT.UN (Toronto) at $32.69

Relative US Dividend

Long Exit at Stop for BP (NYSE) at $45.45

UK Golden Brown

New Long Target and Stop for LCG (London) at 126p (EoD): Target 140p, Stop 115p

US Oak

New Short Target and Stop for C (NYSE) at $3.88 (EoD): Target $3.38, Stop $4.14

US Strength

US Strength Long Unacted Entry for WMT (NYSE) at $52.52 (EoD): Entry signal given, but exited position on same stock too recently (11) days ago.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

Last week's dead-cat-bounce on the FTSE 250 ETF, MIDD, looks to have run its course with the 50-day MA now offering supply in place of demand as was the case in February. Its position relative to psychological resistance at 1,000 is also problematic and the likelihood is for it to make another run at rising support connecting Dec-Feb-May reaction lows.

The problem with such a test coming so soon after the early May capitulation is whether bulls will have the appetite to step in again and defend the line. Working in their favour is the rising 200-day MA which has yet to see a test since the rally kicked off in March 2009 and looks set to bissect this line to the upside.

This will likely be the last opportunity for bulls to maintain the 14-month rally in its current form before a more protracted decline sets in.

On the trading strategy front it was a relatively quiet Monday for signals with short strategies the busiest. There are currently 22 short trading strategies available in the MarketPlace - just select "Short" from the Type drop-down menu in the top-right part of the menu.

ASX Oak

New Short Target and Stop for LEI (Sydney) at AU$32.79 (EoD): Target AU$28.93, Stop AU$35.35

Frankfurt High Winners

Long Exit at Trailing Stop for AUS (Frankfurt) at €9.30

India Oak

New Short Target and Stop for MCDL (Mumbai) at INR1173.6 (EoD): Target INR1053.0, Stop INR1287.0
New Short Target and Stop for ABAN (Mumbai) at INR882.0 (EoD): Target INR762.2, Stop INR931.6
Confirmation Entry for JLVY (Mumbai) at INR1187.4
Short Confirmation Entry for TELCO (Mumbai) at INR811.6

Indian Golden Brown

Long Confirmation Entry for LART (Mumbai) at INR1528.1
Long Unacted Entry for ZEE (Mumbai) at INR291.6 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Exit at Trailing Stop for BHEL (Mumbai) at INR2321.8
Long Exit at Stop for ESRO (Mumbai) at INR127.0
Long Exit at Trailing Stop for PFC (Mumbai) at INR255.1

Indian High Winners

Long Unacted Entry for LART (Mumbai) at INR1528.1 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Unacted Entry for ZEE (Mumbai) at INR291.6 (EoD): Entry signal given, but exited position on same stock too recently (8) days ago.
Long Exit at Trailing Stop for BOB (Mumbai) at INR675.0

ISEQ Elm

Long Confirmation Entry for KRZ (ISEQ) at €22.67

My First Subscribed Strategy

Long Confirmation Entry for WMT (NYSE) at $52.52
Long Exit at Trailing Stop for C (NYSE) at $3.81

Relative Canada

Long Confirmation Entry for MKP (Toronto) at $12.78
Long Confirmation Entry for BDT.UN (Toronto) at $32.69

Relative US Dividend

Long Exit at Stop for BP (NYSE) at $45.45

UK Golden Brown

New Long Target and Stop for LCG (London) at 126p (EoD): Target 140p, Stop 115p

US Oak

New Short Target and Stop for C (NYSE) at $3.88 (EoD): Target $3.38, Stop $4.14

US Strength

US Strength Long Unacted Entry for WMT (NYSE) at $52.52 (EoD): Entry signal given, but exited position on same stock too recently (11) days ago.

Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies via his Zignals home page. Each Zignals member has an unique home page which they can share with friends and clients to sell their strategies.

Building Your Brand In Zignals

"My back testing was accomplished through the Zignals web site (Zignals). This site has recently added (beta) a strategy engine which will let you backtest as far back as the early 2000's various strategies based upon a slew of technical and fundamental parameters."